US Bancorp: The Other Big Bank with Big Problems [View article]
Operating margins are at squeeze at all the bank. Since the last quarter, the FDIC increased its guarantees on the bank deposits from $100,000 to $250,000. This is coming from no where, other than the bank profits. Also the mandatory infusion of TARP money in these banks is making them to payback @ 5% - another squeeze on the profits. The total disbursements have gone down, allocations for charge-offs gone up; all these are putting even good banks at the run.
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The author should comment on the relative strenght of this stock vis-a-vis the competition, or the broader sector.
US Bancorp: The Other Big Bank with Big Problems [View article]
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Isn't it unfair to LEH and its proposed suitor?